Inside Unmanned Systems

APR-MAY 2018

Inside Unmanned Systems provides actionable business intelligence to decision-makers and influencers operating within the global UAS community. Features include analysis of key technologies, policy/regulatory developments and new product design.

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AIR DEFENSE
48 April/May 2018 unmanned systems
inside
A recent market study forecast a 36 percent rise in annual global spending on military UAVs by 2027 with non-U.S.
markets making up a steadily increasing share. That could be a particular opportunity for U.S. manufacturers given
recent talk by the White House of easier export controls but Israel is already a well-placed competitor and China has
its hopes set on the export market too. by Dee Ann Divis
E
nergized by lessons from the conf licts
in Iraq and Afghanistan, countries
around the world are expected to
continue adding unmanned aircraft systems
(UAS) to their military arsenals, driving up
annual global spending for defense drones by
36 percent over the coming decade.
That g row t h in spend ing ref lec t s a
jump from $9.6 billion in unclassified procure-
ment and RDT&E (research, development, test
and evaluation) from fiscal year 2018 (FY18)
to about $13 billion in FY27 inclusive, accord-
ing to the Teal Group, which recently released
its market study World Military Unmanned
Aerial Systems: Market Profile and Forecast.
From FY18 through FY27 military officials
are expected to spend a total of $28.1 billion
on RTD&E and $83.7 billion on procurement.
"I see it as a growth industry—absolutely—
because people have had the opportunity to ob-
serve us now, and so now you see other nations
and you see non-nation states taking advantage
of this technology," said retired Army Lt. Gen.
Ron Burgess, who is now senior counsel for na-
tional security programs, cyber programs and
military affairs at Auburn University.
That steady expansion means the value of
the market for military UAVs will continue to
be larger than that of the individual markets
for civil, consumer or commercial missions—at
least for the next 10 years.
MILITARY UAV
World Military UAS Budget Forecast
R&D and Procurement
0
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
1
2
3
4
5
6
7
8
9
10
11
12
13
14
$
FY18
Billions
RoW=Rest of World; U.S. figures do not include speculative classified spending.
U.S. Proc
U.S. R&D RoW Procurement RoW R&D
World Military UAS Budget Forecast
Plus Speculative U.S. Classified
0
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
2
4
6
8
10
12
14
16
18
20
$
FY18
Billions
U.S. Proc U.S. R&D U.S. Classified Proc. U.S. Classfied R&D RoW Proc. RoW R&D
Source: Teal Group
Chart 2
Chart 1